Two Gateway Center, the largest Class A office property in Newark, New Jersey, at 800,000 square feet, was purchased in 2002 for $99,900,000. At acquisition, current and future vacancy was a major threat. American Landmark Properties successfully leased the property to 100% occupancy, including a 400,000-square-foot lease with the Prudential Insurance Company. At the same time, operating expenses were reduced by 20%.
As a result of the successful lease-up, the property was refinanced at the end of the third year of ownership, allowing investors to recoup approximately 90% of their original equity investment. In 2006, the property was sold for approximately 150% of the original purchase price, reflecting the increased value generated by American Landmark Properties.
